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Pricing - Coggle Diagram
Pricing
Product Mix Pricing Strategies
Captive-Product Pricing
By-Product Pricing
Optional-Product Pricing
Product-Bundle Pricing
Product Line Pricing
Major Pricing Strategies
Value-based Pricing
Good-value pricing
Value-added pricing
Competitor Based Approaches
Close Bid Pricing
Open Bidding
Going Rate Pricing
Negotiated Prices
Cost-based Pricing
Cost plus pricing or mark-up
Break-Even Analysis and Target Profit Pricing
Major influences on pricing
Internal factors
Costs
Attitude of senior management towards pricing
The other 6P's of the marketing mix
Resources
Marketing and corporate objectives
External factors
Demand
Company reputation
Consumer perceptions and expectations
Seasonal factors
Competitors' activities
Legal constraints
The state of the economy
Level and Distribution of income
The components of the proximate and the wider macro environment
New Product Pricing Strategies
Market-Skimming Pricing
Market Skimming makes sense only under certain conditions:
Buyers not price-sensitive and a sufficient number of them must want the product at that price.
The costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more
The product's quality and image must support its higher price
Competitors should not be able to enter the market easily
Market-Penetration Pricing
Several conditions favour setting a low price:
Production and distribution costs must fall as sales volume increases.
The low price must help keep out the competition- otherwise the price advantage may be only temporary.
The market must be highly price sensitive, soo that a low price produces more market growth.